GlobalFoundries (GFS) gains amid TSMC challengesGlobalFoundries Inc. (NASDAQ: GFS) saw its stock climb nearly 7% on Thursday, bucking the downtrend affecting other key players in the semiconductor industry. This increase came amid potential new US restrictions on chip supplies to China, which could negatively impact major competitors like Taiwan Semiconductor Manufacturing Company Limited (TSMC) and NVIDIA Corp. These potential restrictions, stemming from the administration of US President Joe Biden, could limit TSMC and NVIDIA’s business operations in China, creating an advantageous position for GlobalFoundries.
Despite having approximately half the gross margin of TSMC, GlobalFoundries might benefit significantly from these geopolitical shifts. If competitors face restrictions, GlobalFoundries could leverage the situation to raise prices and improve its margins, potentially altering its competitive standing.
Technical analysis of GlobalFoundries Inc. (NASDAQ: GFS)
Reviewing the stock’s current technical setup offers insights into potential trading strategies:
Timeframe : Daily (D1)
Current trend : the stock recently broke through the resistance level at 55.25 USD and is attempting to establish new support at 54.00 USD
Resistance line : previously at 55.25 USD, now potentially acting as support
Potential downtrend target : if the downtrend resumes, the downside target might be set at 49.50 USD
Short-term target : If the uptrend continues, a short-term target could be set at 68.00 USD following a rebound from the new support level
Medium-term target : with sustained positive momentum, the stock price might target 79.00 USD
Investors should closely monitor GlobalFoundries’ performance, particularly as the geopolitical landscape evolves. The company’s ability to capitalise on restrictions its competitors face could significantly influence its market position and stock performance.
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